Michael Maglaras & Company Secures Major Captive Investment

Michael Maglaras, principal of Michael Maglaras & Company, has announced that the captive formed to respond to the crumbling foundations property insurance crisis in Connecticut has successfully secured $36 million more in capitalization from the State of Connecticut.

"This innovative state-sponsored captive insurance company has, over the past 5 years, demonstrated to state government that it is the best kind of solution to any kind of property insurance crisis," said Mr. Maglaras. "I'm grateful to Governor Lamont and his team for recognizing that Connecticut Foundation Solutions Indemnity Company, Inc. (CFSIC), is the ideal public/private captive partnership."

CFSIC, a Connecticut-domiciled captive insurance company formed by Michael Maglaras & Company in 2018, was created to respond to the crumbling foundations property insurance crisis in Connecticut.

Steve Werbner, board chairman of CFSIC, added, "I'm delighted with this progress. We did not expect to reach the milestone number of $130 million in paid property construction claim value until January of 2024, at the earliest. I and the entire board congratulate Mike and his great team on this major achievement."

Mr. Maglaras also reported that CFSIC expects to receive another $160 million in capital to continue its underwriting platform. The team that Mr. Maglaras has assembled includes Crowe LLP, ESIS ProClaim, Marsh Captive Solutions, and Milliman.

"With another anticipated $160 million in capital pledged from state government, this innovative captive solution to a commercial market crisis is the most important model of its kind in the world," said Mr. Maglaras. "Of all the captives we consult with, this is the one that is actually making a direct difference in people's lives, and for me and my team it's a very gratifying initiative."

The state of Massachusetts has a similar crisis involving at least 1,000 homes. A similar crisis exists in Northern Ireland and in Canada. Mr. Maglaras added, "No one from Massachusetts has contacted us, which is surprising. Everyone in the captive industry knows that when the chips are down captives are able to deliver innovative solutions to consumers of insurance coverage."

Mr. Maglaras also added, "Captives have always been the place where responsive insurance solutions can be found when the commercial market cannot or will not respond. Around the world, as we now must respond to perhaps another global pandemic insurance market crisis, CFSIC is recognized as a model of government collaboration with a private captive enterprise for the direct benefit of citizens."

To learn more about Michael Maglaras & Company, visit the company's website.

To learn more about CFSIC, visit the captive's website.